BWI: Real Estate Sector Sends Positive Signals of Revival: CII Conference on Real Estate

Press release from Business Wire India
Source: Confederation of Indian Industry
Friday, September 11, 2009 03:40 PM IST (10:10 AM GMT)
Editors: General: Consumer interest, Economy, People; Business: Banking & financial services, Business services, Construction, Financial Analyst, Media & entertainment, Real estate
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Real Estate Sector Sends Positive Signals of Revival: CII Conference on Real Estate
Transparency, Governance and Social Responsibility - Essentials to Take Indian Real Estate Sector to the Next Level: Arun Nanda

Mumbai, Maharashtra, India, Friday, September 11, 2009 -- (Business Wire India) -- "Revival of Indian real sector lies in providing affordable housing by cross subsidization and conscious effort on part of the developers to inculcate corporate social obligation", recommended Mr Arun Nanda, Deputy Chairman, CII Western Region and Executive Director Mahindra & Mahindra Ltd. Mr Nanda was speaking at the conference on "Turnaround in the Downturn- An insight into the current Real Estate Scenario" organized by the Confederation of Indian Industry (CII) in Mumbai today.

Calling upon the stake holders of the Indian real estate sector to look back and analyze the reasons of downturn in the sector, he emphasized that with the reduction in interest rates from 14% to 8%, the sector was now showing signs of revival. Speaking on the issue of urbanization he said, "Based on the past trends, by the year, 2030 40% of our population will live in urban areas. It is thus essential that challenges of infrastructure and urbanization be met". He also laid emphasis on development of satellite centers as a means to tackle the issue of growing urbanization and urged the need to ensure balanced urbanization.

At the power packed real estate seminar, CII along with global property consultants Jones Lang LaSalle Meghraj launched a timely white paper on 'Capital flows outlook for Indian real estate in the near future'. Commenting on the paper, Mr Anuj Puri, Chairman and Country Head, Jones Lang LaSalle Meghraj remarked: "We have strong reason to believe that the Indian real estate sector will go into recovery mode by the end of this year - far ahead of previously projected timelines. This recovery will be fuelled by a confluence of different factors influencing the economy in general and the Indian real estate sector in particular. Global capital flows are looking for existing and futuristic growth indicators and patterns, and India has displayed both to a measurable degree. These factors, coupled with an already discernible return of positive sentiments in the real estate business, will result in enhanced interest by foreign real estate investors. This will first become evident during CY10-11 and protract sustainably over the medium-to-long-term."

"Real estate is the single biggest business in the country creating high employment. This business needs to be strongly encouraged for the growth of our economy", stressed Mr Adi Godrej, Chairman Godrej Group. Viewing affordable housing as garnering good opportunities in the sector, he said that land cost and mortgage rates need to continue to remain at reasonable levels to have developers invest in low cost housing. "Affordable housing can add 1%-1.5% to our GDP growth. Also the need is to have well planned urbanization with clear policies ad regulations.

Sharing his perspectives of the real estate sector, Mr Niranjan Hiranandani, Managing Director, Hiranandani Constructions emphasized that lessons have been learnt by the developers and the time is now ripe to reboot the Indian real estate sector. Talking about the plethora of regulations governing the Indian real estate sector, he called for a transformation in the regulatory system of the country.


CONTACT DETAILS
Ankita Shethia, Vaishnavi Corporate Communications (Pvt) Ltd., +91 9833823731, pr.ankita@gmail.com
Mohan Gawde, CII Media Desk, +91 9967551630, mohancii@gmail.com

KEYWORDS
CONSUMER, ECONOMY, PEOPLE, BANKING, BUSINESS SERVICES, CONSTRUCTION, Financial Analyst, MEDIA, REAL ESTATE

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